Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question:
Car Maker Ltd is a multinational. In one of the countries where it is present, current legislation makes it compulsory for companies to pay a gratuity lump sum at retirement equivalent to 150% of the monthly salary per complete year of service. For companies which have a pension scheme in place, they can deduct 100 times the monthly pension off the gratuity lump sum payment. Car Maker Ltd wants to put in place a final salary DB scheme to fund in advance this gratuity benefit
a) What is the minimum accrual rate that will ensure that Car Maker will have no liability at retirement in respect of the gratuity?
b) How will your answer to (a) above change if Car Maker Ltd defines pensionable salary as the average over the last 5 years instead of using final salary? Explain
c) On a purely cost basis, is it in the interest of Car Maker to set up a DB scheme with the minimum accrual rate to fund for the gratuity lump sum assuming that retirement age is 65 and life expectancy at retirement is 12 years? Explain
d) How would your answer to (c) above change if all employees of Car Maker Ltd were females instead of males? Explain
Suppose you are given the expected yearly returns and standard deviations and correlations shown in the tables below: The market portfolio has an expected return of 18% and
Professor Steward Hamilton wrote a case on the Enron collapse. He stated that when Enron failed and filed for bankruptcy protection on December 2001, the entair world came to a sh
Question: a) Using illustrative and numerical examples, differentiate between arbitraging and speculation in the context of foreign exchange market. b) One year borrowing
rf is 5% rM is 10% according to the SML and the CAPM, an asset with a beta of -2 has a required return of negative 5% (=5-2(10-5). can this be possible? Is this a negative asset w
Baobab rolling mills owns a lathe machine which was purchased 10years ago at sh. 75 million. The machine had an expected life of 15 yrs at the time it was purchased, and management
1) Select an organization that you are familiar with and evaluate the steps needed to transform the business plans into Balance Score Cards & Key Performance Indicators 2)
Question 1: Participants in a recent radio discussion on the WTO were full of ideas. The WTO could do this, the WTO should do that, they said. One of them finally interjected:
Ask questThe credit term "2/45 net 90" indicatesion #Minimum 100 words accepted#
Differences btn debt finance and preferance share capital
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd